Pact inked for enhanced US investment support in India


NEW DELHI: India and the US signed an investment incentive agreement (IIA) in Tokyo that will supersede the earlier agreement of 1997. The agreement for enhanced US investment support was signed by foreign secretary Vinay Kwatra and US International Development Finance Corporation (DFC) CEO Scott Nathan.
“Significant developments have taken place since signing of the earlier IIA, including the creation of a new agency called DFC, a development finance agency of the US government, as a successor agency of the erstwhile Overseas Private Investment Corporation after the enactment of a recent legislation of USA — the BUILD Act 2018. IIA has been signed to keep pace with additional investment support programmes, offered by the DFC, like debt, equity investment, investment guaranty, investment insurance or reinsurance, feasibility studies for potential projects and grants,” said a government statement.
DFC or its predecessor agencies are active in India since 1974 and have so far provided investment support worth $5.8 billion, of which $2.9 billion is still outstanding, said the government. “Proposals worth $4 billion are under consideration by DFC for providing investment support in India. DFC has provided investment support in sectors like Covid vaccine manufacturing, healthcare financing, renewable energy etc,” the government said.


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